New Regis Corp. CEO Daniel Hanrahan will get an annual salary of $850,000, the Edina-based hair salon chain disclosed late Friday in a filing with the Securities and Exchange Commission.
Hanrahan also will be eligible for an annual incentive award equal to 125 percent of his annual salary, depending on company performance. For the company's fiscal year ending June 30, 2013, Hanrahan also receives equity awards with a targeted value of $2.25 million that consist of 20 percent restricted stock awards, 40 percent performance share awards and 40 percent stock appreciation rights.
Hanrahan also received two specialty restricted stock grants when he started on Aug. 6. The first grant consists of 118,062 shares of restricted stock that will vest in full at the end of five years. The second grant consists of 20,000 restricted stock units that will vest if the company's stock trades at or above $35 for 20 consecutive trading days at some time during the five year period beginning with his commencement of employment.
The value of the first specialty restricted stock grant will depend on the price of the company's stock in five years, but based on Friday's share price, the award would be worth $2.2 million. The second stock award would be worth at least $700,000 should it meet its trading requirements. Regis stock closed Friday at $18.65.
Hanrahan also is eligible for relocation expenses up to a maximum of $100,000. Hanrahan was most recently CEO and president of Celebrity Cruises, a division of Royal Caribbean Cruises.
The company had conducted a long search for a new CEO after the company's former head, Paul Finkelstein, was forced out by an activist hedge fund in February. The last annual salary for Finkelstein was $1.35 million, plus he earned an annual bonus of $459,209.
Patrick Kennedy • 612-673-7926